Thai AirAsia X and NokScoot both target Thailand-Japan market, starting with Bangkok-Tokyo Narita

Competition in the Thailand-Japan market will greatly intensify by the end of 2014 as new long-haul low-cost carriers Thai AirAsia X and NokScoot both plan to serve Tokyo Narita as their first destination. Thai AirAsia X plans to initially serve Japan with charter flights starting in Apr-2014 while Thai AirAsia X and NokScoot are both expected to start operating scheduled services to Japan in 4Q2014.

Thai AirAsia X will launch with a fleet of two A330-300s sourced from its Malaysian sister carrier while NokScoot is now planning to launch with a fleet of two 777-200s sourced from Singapore Airlines. Thailand will become the first country with two medium/long-haul LCCs, providing an intriguing dynamic.

The Thailand-Japan market is growing rapidly and could benefit from LCC stimulation. But there is a risk of overcapacity, particularly if the Thailand market does not recover rapidly from the recent political protests.